SINGAPORE – Media OutReach – 14 May 2021 – Despite global economic disruptions brought about by the COVID-19 pandemic, car insurance premiums remain steep in Singapore. In a bid to help car owners make informed decisions about their vehicle insurance coverage and ensure accessibility of car insurance, DirectAsia, Singapore’s leading online insurer, points out that individuals must first be educated on the determinants of one’s policy. The organisation thus puts its support behind car owners by revealing several factors that insurers weigh when pricing out a quote.
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1. Vehicle Make and Model
Continental cars, luxury cars and SUVs are typically tied to higher insurance rates. These can be attributed to the importing fees and expensive parts. On the contrary, vehicle owners can anticipate lower insurance rates when owning a car from Japanese or Korean brands.
2. Age of Car
New vehicles are obligated to higher insurance rates as the potential costs of repairing or replacing the car parts are being considered. The rates dip as the car ages and stay at a minimum when the vehicle reaches ten years or more.
3. Experience & Age of Insured
Given that younger drivers have a higher propensity to take risks while driving and pose a greater likelihood of being involved in car accidents, insurers tend to charge higher rates for this age group. This also applies to novice drivers with less than two years of experience behind the wheels. Following that are senior drivers above the age of 65, who may have higher risk of accidents on the roads.
4. Vehicle Modifications
Car modification is one of the lesser-known factors that could raise your insurance premium. Despite that, DirectAsia emphasises the importance of declaring any modifications to the insurer or prospective insurer, as non-disclosure may result in future claims being repudiated.
5. Claim History
Lastly, claim history is also added to the equation. If a single claim above $10,000 or two or more claims were made in the past three years, insurers might add on loading fees, which results in a higher base premium.
Conversely, individuals with good driving records and no past claims within one year or more are entitled to no claim discount(NCD). This can go up to 60% at DirectAsia.
Compare Car Insurance
Understanding what affects your premium is important but so is comparing providers to find the right car insurance that suits your lifestyle and budget. Brands like Budget Direct Insurance offer affordable and flexible cover with practical benefits. These include tailor-made policies to match how and by whom your car is used, no agent commissions (so you save more), and 24/7 claims assistance every day of the year.
Budget Direct also provides a 12-month guarantee on repairs at authorised workshops and has earned the Feefo Trusted Service Award every year since its launch—reflecting its consistently exceptional customer service. Comparing providers ensures you’re not only protected but getting genuine value and peace of mind.
Revolutionising Car Insurance in Singapore and Beyond
Besides understanding the rating factors, DirectAsia highlights that finding the right insurer to meet an individual’s unique lifestyles, preferences and needs is equally critical.
Reflecting DirectAsia’s relentless commitment to delivering unrivalled value are its tailored and transparent policies, complemented with exclusive promotions and optional benefits like NCD Protector Plus, Compensation for Loss of Use and more. Both experienced and inexperienced drivers can expect highly customisable motor insurance policies from the award-winning insurer. Interested individuals can reach out to DirectAsia for a no-commitment quote here.
About DirectAsia Singapore
DirectAsia, a subsidiary of the Hiscox Group, was launched in Singapore in 2010 with a goal of changing the face of insurance in Asia. The industry leader places its customers at the forefront and seeks to make insurance less complex by offering quick, convenient and transparent online insurance policies that are jargon-free. For more information, please visit: https://www.directasia.com/.
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